1336
Liability for loss by reason of improper investment.
[56 & 57 Vict. c. 53 s. 9; 57 & 58 Vict. c. 10 s. 4.]
Power of appointing No. 5 of 1901.
TRUSTEES.
able practical surveyor or valuer instructed and employed independently of any owner of the property, whether such surveyor or valuer carried on business in the locality where the property is situate or elsewhere, and that the amount of the loan does not exceed two equal third parts of the value of the property as stated in the report, and that the loan was made under the advice of the surveyor or valuer expressed in the report.
(2) A trustee lending money on the security of any leasehold property shall not be chargeable with breach of trust only upon the ground that, in making the loan, he dispensed either wholly or partly with the production or investigation of the lessor's title.
(3) A trustee shall not be chargeable with breach of trust only upon the ground that, in effecting the purchase of or in lending money upon the security of any property, he has accepted a shorter title than the title which a purchaser is, in the absence of a special contract, entitled to require, if, in the opinion of the Court, the title accepted is such as a person acting with prudence and caution would have accepted.
(4) This section applies to transfers of existing securities as well as to new securities, and to investments made as well before as after the commencement of this Ordinance.
22.-(1) Where a trustee improperly advances trust money on a mortgage security which would, at the time of the investment, be a proper investment in all respects for a smaller sum than is actually advanced thereon, the security shall be deemed an authorised investment for the smaller sum, and the trustee shall only be liable to make good the sum advanced in excess thereof, with interest.
(2) A trustee shall not be liable for breach of trust by reason only of his continuing to hold an investment which has ceased to be an investment authorised by the instrument creating the trust or by the general law.
(3) This section applies to investments made as well before as after the commencement of this Ordinance.
PART III.
VARIOUS POWERS AND DUTIES OF TRUSTEES.
Appointment of New Trustees.
23. (1) Where a trustee, either original or substituted and new trustees, whether appointed by a Court or otherwise, is dead, or remains out [56 & 57 Vict. c. 68 s. 10.]
і
1336
Liability for
loss by reason of improper investment.
[56 & 57 Vict.
c. 53 s. 9;
57 & 58 Vict. c. 10 s. 4.]
Power of appointing
No. 5 of 1901.
TRUSTEES.
able practical surveyor or valuer instructed and employed indepen- dently of any owner of the property, whether such surveyor or valuer carried on business in the locality where the property is situate or elsewhere, and that the amount of the loan does not exceed two equal third parts of the value of the property as stated in the report, and that the loan was made under the advice of the surveyor or valuer expressed in the report.
(2) A trustee lending money on the security of any leasehold property shall not be chargeable with breach of trust only upon the ground that, in making the loan, he dispensed either wholly or partly with the production or investigation of the lessor's title.
(3) A trustee shall not be chargeable with breach of trust only upon the ground that, in effecting the purchase of or in lending money upon the security of any property, he has accepted a shorter title than the title which a purchaser is, in the absence of a special contract, entitled to require, if, in the opinion of the Court, the title accepted is such as a person acting with prudence and caution would have accepted.
(4) This section applies to transfers of existing securities as well as to new securities, and to investments made as well before as after the commencement of this Ordinance.
22.-(1) Where a trustee improperly advances trust money on a mortgage security which would, at the time of the investment, be a proper investment in all respects for a smaller sum than is actually advanced thereon, the security shall be deemed an authorised investment for the smaller sum, and the frustee shall only be liable to make good the sum advanced in excess thereof, with interest.
(2) A trustee shall not be liable for breach of trust by reason only of his continuing to hold an investment which has ceased to be an investment authorised by the instrument creating the trust or by the general law.
(3) This section applies to investments made as well before as after the commencement of this Ordinance.
PART III.
VARIOUS POWERS AND DUTIES OF TRUSTEES.
Appointment of New Trustees.
23. (1) Where a trustee, either original or substituted and new trustees. whether appointed by a Court or otherwise, is dead, or remains out [56 & 57 Vict.
c. 68 a. 10.]
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